HB 505: Restrict use of crowdfunding money for other purposes

The bill aims to regulate crowdfunding practices in Ohio. It defines crowdfunding as the practice of obtaining funding by soliciting and receiving donated funds or virtual currency for a noncommercial purpose described in the solicitation. The bill prohibits crowdfunding organizers from using funds raised via crowdfunding for any purpose other than the specified purpose, and requires them to refund or remit excess funds to donors. Crowdfunding platforms are required to include certain provisions in their terms of service, including a prohibition against using funds for unlawful purposes and a requirement to remit excess funds to donors. The platforms must also keep accurate records of fundraising and disposition of funds for at least three years. The bill imposes administrative penalties of up to $10,000 for each violation of the regulations, and allows the Attorney General to bring civ…